Why Sychronoss Shares Took Off

Is this meaningful? Or just another movement?

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Synchronoss Technologies(NASDAQ:SNCR) are soaring 20% higher today after reporting earnings that came in ahead of expectations, combined with a solid set of forward guidance.

So what: Wall Street was looking for $0.25 per share on $70.1 million in revenues for Synchronoss' fourth quarter, but the company surprised on the upside with $73.8 million in revenue and $0.29 per share in adjusted earnings. The company's guidance was in the $330 million to $350 million range for the full year of 2013, and non-GAAP revenue in the $75 million to $78 million range for the current quarter, with EPS in the range of $0.27 to $0.29. The top-line estimate for the current quarter is slightly ahead of the $74.3 million Wall Street sought, but its EPS range only hits the consensus of $0.29 on the high end. For the full year, analysts had expected $330.1 million and $1.29 in EPS.

Now what: Synchronoss has impressed the market today with bullish expectations, and its P/E remains at the lower end of the past year's range. It might be worth keeping an eye on the stock, which is known for wild moves, but I wouldn't jump in after this jump.

Author

Alex Planes specializes in the deep analysis of tech, energy, and retail companies, with a particular focus on the ways new or proposed technologies can (and will) shape the future. He is also a dedicated student of financial and business history, often drawing on major events from the past to help readers better understand what's happening today and what might happen tomorrow.